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Direct MarketingDirect Marketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
RadioRadio
Direct SellingDirect Selling Magazine and NewspaperMagazine and Newspaper
Direct MailDirect MailTelemarketingTelemarketing
TV SellingTV SellingRadioRadio TV SellingTV Selling
Direct MailDirect Mail
Magazine and NewspaperMagazine and NewspaperDirect SellingDirect Selling
1. Direct Marketing Defined
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
“The total of activities by which the seller directs efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, or personal visit from a
prospective customer.”
“The total of activities by which the seller directs efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, or personal visit from a
prospective customer.”
Technological AdvancesTechnological Advances
Direct Marketing SyndicatesDirect Marketing Syndicates
Changing Structure of SocietyChanging Structure of Society
Consumer Credit CardsConsumer Credit Cards
Technological AdvancesTechnological Advances
Changing Structure of SocietyChanging Structure of Society
Direct Marketing SyndicatesDirect Marketing Syndicates
Consumer Credit CardsConsumer Credit Cards
2. Growth of Direct Marketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AdvertisingAdvertising
Sales PromotionSales Promotion
Public RelationsPublic Relations
Personal SellingPersonal SellingSupport MediaSupport MediaSupport MediaSupport Media
Sales PromotionSales Promotion
Personal SellingPersonal Selling
Public RelationsPublic Relations
AdvertisingAdvertising
3. Role of DM in IMCDirect Marketing Combines With . . .
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Direct Marketing
Direct Marketing
List ServicesList Services
Direct MarketingAssociation
Direct MarketingAssociation
Standard Rate &Data Service
(SRDS)
Standard Rate &Data Service
(SRDS)
U.S. Postal Service
U.S. Postal Service
U.S. Census Bureau
U.S. Census Bureau
U.S. Census Bureau
U.S. Census Bureau
Direct MarketingAssociation
Direct MarketingAssociation
U.S. Postal Service
U.S. Postal Service
Standard Rate &Data Service
(SRDS)
Standard Rate &Data Service
(SRDS)
List ServicesList Services
4. Developing a Database
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
SourcesSources
A Comprehensive Consumer Data Base
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Name
Address/Zip Code
TelephoneNumber
Length ofResidence
Age
Gender
MaritalStatus
FamilyData
Education
Income
Occupation
TransactionHistory
PromotionHistory
InquiringHistory
UniqueIdentifier
Name
Address/Zip Code
TelephoneNumber
Length ofResidence
Age
Gender
MaritalStatus
FamilyData
Education
Income
Occupation
TransactionHistory
PromotionHistory
InquiringHistory
Comp. Contact or Decision
Makers
Title of Contact
Telephone Number
Source of Order/inquiry
or Referral
Credit History
Industrial Classification
Size of Business
Revenues
Number of Employees
Time in Business
Headquarter, Multiple Location
Purchase History
Promotional History
Inquiry HistoryInquiry History
Promotional History
Purchase History
Headquarter, Multiple Location
Time in Business
Number of Employees
Revenues
Size of Business
Industrial Classification
Credit History
Source of Order/inquiry
or Referral
Telephone Number
Title of Contact
Comp. Contact or Decision
Makers
A Comprehensive Business to Business Data Base
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Unique Identifier
Improve Selection of Market Segments
Improve Selection of Market Segments
Stimulate Repeat Purchases
Stimulate Repeat Purchases
Cross-selling Other Products
Cross-selling Other Products
Customer Relationship Management
Customer Relationship Management
Cross-selling Other Products
Cross-selling Other Products
Stimulate Repeat Purchases
Stimulate Repeat Purchases
Improve Selection of Market Segments
Improve Selection of Market Segments
Objectives of Database Marketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ObjectivesObjectives
One-StepOne-Step Two-StepTwo-StepOne-StepOne-Step
• The medium is used directly to obtain an order
• Often use 800 number phone orders and credit card payment
• May use one medium to obtain inquiry and qualify prospect
• Typically follow up with a second medium to complete the sale
5. DM strategies (approaches)
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Direct MailDirect Mail CatalogsCatalogs
Broadcast Media
Broadcast Media
TV SpotsTV Spots
InfomercialsInfomercialsHomeshoppingHomeshopping
Print MediaPrint MediaPrint MediaPrint Media
HomeshoppingHomeshopping InfomercialsInfomercials
TV SpotsTV Spots
Broadcast Media
Broadcast Media
CatalogsCatalogsDirect MailDirect Mail
6. Direct-Marketing Media
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MediaMedia
Outbound and Inbound Telemarketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
InboundInbound
Telephone calling by the marketer or marketer’s agent to individual prospects, seeking purchase, subscription, membership, or participation by the call recipient.
Marketers’ facilities and invitations to prospects to call a central location or long distance number or by toll-free, 800 or fixed cost 900 number.
OutboundOutboundOutboundOutbound
7. Overall Direct Marketing Pros & Cons
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AccuracyAccuracy
Rising CostsRising Costs
Image FactorsImage Factors
Content SupportContent Support
Selective ReachSelective Reach
Segmentation CapabilitySegmentation Capability
Frequency PotentialFrequency Potential
FlexibilityFlexibility
TimingTiming
PersonalizationPersonalization
EconomyEconomy
AdvantagesAdvantages DisadvantagesDisadvantages
Measurement of Effectiveness
Measurement of Effectiveness
AccuracyAccuracy
Image FactorsImage Factors
Content SupportContent Support
Selective ReachSelective Reach
Segmentation CapabilitySegmentation Capability
Frequency PotentialFrequency Potential
FlexibilityFlexibility
TimingTiming
PersonalizationPersonalization
EconomyEconomy
Measurement of Effectiveness
Measurement of Effectiveness